The development of the world economy and international relations becomes vulnerable to the overwhelming impact of globalisation which affects all countries, even though they conduct isolationist policies, such as North How to be a safe driver essay, for instance. Moreover, once started, the process of globalisation is likely to be irrevocable. Globalisation is the process of the international economic, political and cultural integration of nations. The economic integration is the major driver of the process of globalisation.
Globalisation has started as the increasing economic cooperation between nations at the regional level and steadily evolved into the global trend. The economic cooperation between countries was the result of the accumulation of capital by leading companies operating in the national market. The accumulation of capital made national markets inattractive for companies because they have saturated them and they needed further export of capital and international market expansion. In such a situation, the international market expansion prior to the globalisation era was not always profitable because of high costs of such expansion. The high costs of international market expansion and, therefore, international economic cooperation between nations, was the result of high fiscal barriers, which local governments introduced to support their domestic economies.
The process of globalisation emerged after the beginning of the elimination of fiscal barriers to developer free trade between countries. The free trade implied the elimination of fiscal barriers that stimulated companies operating in different countries expand their business internationally. At the dawn of globalisation, there were interstate agreements involving two or three states, as was the case of the NAFTA signed by the US, Canada and Mexico, but soon such agreements involved multiple parties and, today, free trade agreements involve the majority of nations. At this point, it is worth mentioning the EU as one of the most advanced and integrated international community that united European nations and evolved from the economic union into the supranational political union which unites European countries, members of the EU. Therefore, the process of globalisation involves the elimination of fiscal barriers and limitations on the movement of capital, goods, commodities, and human resources.
The increasing economic cooperation between nations stimulated the development of multinational corporations which operated globally. The overwhelming majority of multinational corporations were based in well-developed countries. Multinational corporations in their turn encouraged governments to eliminate fiscal barriers and develop free trade further to facilitate their further international market expansion. At the same time such policy resulted to the consistent strengthening of the process of globalisation which has become the mainstream trend in the contemporary economic development of the world. Globalisation has had a considerable impact on developed countries. In this regard, one of the effects of globalisation was the development of trade between well-developed nations mainly. In fact, the trade between developed nations comprises the larger share in the total world trade.